Definition: The working capital of an entity is defined as the difference between current assets and current liabilities. It is an interpretation of how liquid the company is in the short term. A positive working capital indicates that the company has enough money to pay off its debts and is financially stable whereas a negative […]
Accounting for Working Capital: Calculation with 5 Steps Read More »
Working capital is the amount of capital revolving, circulating in the short term to facilitate the daily operations of the business. It is considered the backbone of every business as it plays a very important role in the growth of the business. That’s why financial managers give the utmost importance to working capital management for
What is the Concept of Working Capital? (Gross Working Capital and Net Working Capital) Read More »
The difference between a company’s current assets and current liabilities is called working capital. You can say that the working capital is the number of liquid assets which are using by the company to conduct their business. Working capital should be efficiently used in order to achieve long term growth and profitability. It is one
5 Key Components of Working Capital (Explained) Read More »